By Alissa Henry
Good news! Older Americans are living longer than ever. However, that means retirees now need to save more than ever to make their retirement money last during these extra years.
A leading membership-based organization for actuaries in the United States and Canada, Society of Actuaries, found that since its last report published in 2000 the life expectancy of both men and women has risen two years. Specifically, for men age 65, longevity has risen two years, from age 84.6 to age 86.6 in 2014. Similarly, among 65-year-old women, longevity rose 2.4 years, from age 86.4 in 2000 to age 88.8 in 2014. Those additional two years could mean an increase of 10% or more in retirement spending.
If you are retired or are getting ready to retire, consider doing one or more of these five things to help make your money last:
- Clarify your current financial situation, as well as any significant changes you expect.
- Boost your retirement savings by 20 percent or more.
- Scale back your annual withdrawals.
- Comprehensively review your financial situation and goals annually.
- Review your budget monthly to be certain you’re keeping within your spending and saving goals.
Keep in mind interest rate trends and market moves, changes in tax rates and regulations, changes in Social Security or Medicare benefits or eligibility, inflation and health care costs and big life events, for all of these factors can affect your cash flow.
Longer life means longer lasting money, so take the steps you need to be prepared! Content provided by Financial Planning Association®.
